Deflation – Inflation Currency Reform?
How central bankers will charge and how investors clever to react and can earn the meltdown on the financial markets is averted. Observers worry gradually so as it will go in the coming months. It is clear that central banks in the hand hold the key. They have kept the markets and the economy with hefty cash injections and special measures in the liquidity policy before the collapse. Inevitably the time closer now that central banks worldwide reduce their aid again.
The question is: how will business and markets react? It is certain that there never such scale has been in a crisis rescue measures. So the way is not back to normal. Rather being discussed even in the central banks sharply the likeliest scenario. While the guardians of money around the world are in a quandary. Because they fear both runaway inflation. They are more concern but a permanent Deflation.
The biggest problem of the bankers, however, is that them the past crisis clearly front, was conducted that seem conventional analysis systems, no longer accept valuation models and standards. The tools which they use to control the economy of (fed), and to maintain monetary stability (ECB), seem to be no longer correct. This is most striking in measuring the inflation rate. It is measured with the consumer price index (HCPI) and expressed. And the HICP depends significantly on the composition of the so-called shopping cart. This includes the services and goods of for daily use (bread, fruit, beer, cars, refrigerators, etc.) collected and weighted. But: Increasingly important cost units of everyday are not included in the shopping cart. For example, house prices or financial expenses includes old-age provision. The reason: Whether investment property or to own use real estate are not supposed assets, would be consumed. For this reason, these asset prices for banks are not relevant for their task.